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Equity markets continue to reach all-time highs and the US economy is currently showing little threat of a recession. Because of this, our portfolios remain overweight equities – primarily overweight US large cap equities and diversified international equities. Here are our key takeaways from Stratos Private Wealth’s most recent Market Outlook Webinar:
- Pros: Strong earnings growth has continued to support the bull market. We continue to see improvement in the global economy, with NDR’s measures of economic breadth making multi-year highs.
- Cons: Although relative values are reasonable, the elevated absolute valuation of US equity markets carries extra risk. US equities are overdue for a correction, but this may happen within the current secular bull market. Slowing earnings growth could be the correction catalyst.
Now is a good time to review risk tolerance, large holdings of employer stock, and account allocations for investments outside of Stratos Private Wealth. We will continue to closely monitor our indicators to dictate the best course of action based on the weight of the evidence.
Stratos Private Wealth is a division through which Stratos Wealth Partners, Ltd. markets wealth management services. Investment advisory services offered through Stratos Wealth Partners, Ltd., a registered investment adviser. Stratos Wealth Partners and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only; and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. Investing involves risk including possible loss of principal. Some of the information contained herein has been obtained from third party sources which are reasonably believed to be reliable, but we cannot guarantee its accuracy or completeness. The information should not be regarded as a complete analysis of the subjects discussed.
